Financing and Mobile Technologies in Microfinance of Mexican Mango Exports

摘要

According to the US Department of Agriculture Economic Research Service, Mexico is the main source of US imports of fresh and frozen fruits, with $88 million in imports during August 2010. Mexico is the gold standard and leading supplier of mangoes to the US, with $129 million worth of mangoes exported in 2009. Environmental and pest issues, including the fruit fly, are the main threats to mango production. Approximately $10 million are spent every year by large farmers and the government to control these issues. However, small mango farmers are severely impacted given their limited resources to cover the costs of maintaining their crops. This paper proposes a microfinance solution that incorporates a financing and insurance option. The business processes associated with these services are modeled using the Unified Modeling Language (UML). Two key elements of the information technology architecture proposed include Service Oriented Architecture (SOA) and mobile phones. The widespread use of mobile technology in Mexico provides a low cost alternative for financial institutions. Social and human capital are strengthened by allowing small farmers to access financial resources. This enables them to compete in the market for mango exports to the US while enhancing the sustainability of farming communities.